Mapletree Industrial Trust completes joint purchase of 14 US data centres for $753m

Photographer: Simon Dawson/Bloomberg

Real estate investment trust company Mapletree Industrial Trust (MIT) has completed the joint purchase of 14 data centres in the US, the firm today announced. The deal – which was done through an unlisted single purpose trust, Mapletree Redwood Data Centre Trust – was valued at a total of $753.8 million.

In all, MIT’s investment in the joint venture (JV) with Mapletree Investments comes up to about $304.7 million. The company said it has used about S$153.1 million, or 98 per cent of its S$155.7-million private placement, to partially fund its net requirement of $$169 million with regard to the JV and acquisition. The remaining S$2.6 million, or 1.7 per cent of proceeds, has been used to pay placement-related expenses.

In October, MIT priced an upsized S$155.7 million placement of units at S$1.90 apiece. The REIT had planned to issue at least S$125 million of units between S$1.83 and S$1.90 per unit, with an over-allotment option of at least S$25 million. MIT closed at S$2.04 per unit on Dec 20, unchanged from the previous day’s close.

MIT is a REIT listed on the Main Board of Singapore Exchange that invests in a diversified portfolio of real estate used primarily for industrial purposes, whether wholly or partially in Singapore, as well as real estate-related assets.

The trust manager has said that its investment strategy will be expanded to include real estate and real estate-related assets used primarily as data centres worldwide beyond Singapore.

MIT’s portfolio of 85 properties in Singapore is valued at approximately S$3.78 billion as at 30 September 2017. These industrial properties include flatted dactories, hi-tech buildings, business park buildings, stack-up/ramp-up buildings and light industrial buildings.

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